AUSTRALIAN sugarcane growers welcomed the news of the official signing of the Australia-UK Free Trade Agreement (FTA) saying it creates certainty for growers and could lead to industry growth in terms of a diversification of potential buyers of Aussie product.
Once the FTA comes into effect it will give up-front tariff-free access for 80,000 tonnes of Australian sugar to be sold to the UK in the first year increasing by 20,000 tonnes each year for the next eight years.
Canegrowers chairman and Farleigh, near Mackay, sugarcane producer Paul Schembri said having multiple export opportunities was a boost for the industry.
"We've got strong ties with Asia and now we can work towards rebuilding what was once a really strong relationship with the UK," Mr Schembri said.
He said while there were significant freight costs in moving a bulk commodity from one side of the globe to the other British refiners had expressed satisfaction with the Australian product.
"They really like our high quality sugar so we think we will see sales heading that way in spite of the higher freight costs," he said.
Canegrowers chief executive Dan Galligan said even the first year quota dwarfed what had previously been possible to trade with the European Union, which has a large sugar beet industry.
"We thank the Australian government for achieving this result which is a huge boost on the 9,925 tonnes quota we had for the whole of the European Union prior to Brexit," Mr Galligan said.
"The Australian industry looks forward to supplying high quality, sustainably and ethically produced sugar to top up local beet sugar production so that UK refiners can meet the country's needs," he said.
Mr Schembri said the news may see farmers more willing to increase cane plantings.
"Nothing stalls investment like uncertainty and nothing supports it like certainty, we have certainty now and I think farmers may look to take advantage of any opportunities they can see."
Mr Galligan agreed.
"While markets in the Asia-Pacific region will continue to be the main focus of Australia's sugar sales, this Aus-UK FTA will allow for some important diversification for our export-oriented industry which relies on a fair and rules-based world trading system," Mr Galligan said.
Meanwhile, the grains industry, which was a low key player in the FTA, also congratulated the government for getting the deal through.
"GPA congratulates Federal Trade Minister Dan Tehan for securing this trade deal on the eve of Christmas to cut tariffs and deliver benefits for Australian farmers and the nation," Grain Producers Australia chief executive Colin Bettles said.
"This will provide better access via duty-free quotas and tariffs being fully eliminated over four years for Australian grains such as wheat and barley, when the deal comes into force," he said.
"While the UK may not be a big market for Australian grains, the removal of import tariffs imposed on other commodities such as sheep meat and wool, which many Australian grain producers often also grow, sell and export, will provide benefits for their farming businesses and communities."
"GPA also welcomes the agreement increasing the working holiday visa age limit to 35, to increase access to skilled workers from the Northern Hemisphere to work on grain farms and meet surge capacity labour needs during peak periods such as harvest and seeding."
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